The Norwegian Petroleum Directorate has reported that a record number of fields are now producing on the Norwegian Continental Shelf.
The Norwegian Petroleum Directorate has reported that a record number of fields are now producing on the Norwegian Continental Shelf.
Fifty seven exploration wells were spudded in 2019, four more than in 2018. Thirty seven exploration wells were drilled in the North Sea, 15 in the Norwegian Sea and five in the Barents Sea.
A record 83 production licences were awarded across the Norwegian shelf in 2019 in the Awards in Pre-defined Areas (APA 2018). There were also ‘a good number’ of applications for APA 2019, which were expected to be made in January.
Developments in seismic technology have resulted in much sharper images of the subsurface, contributing to 17 discoveries in 2019, ten in the North Sea, six in the Norwegian Sea and one in the Barents Sea, said the NPD.
Since 2011 an average of 80 million standard cubic metres (Sm3) of oil equivalent (o.e.) has been proven each year, around one-third of the yearly production from the Norwegian shelf.
‘The last two years have seen a marked increase in proven volumes compared with the three previous years. This shows that there is a connection between the number of exploration wells drilled and discoveries made,’ NPD director general Ingrid Sølvberg said.
At the end of 2019, there were a record 87 producing fields. Most of the oil and gas still comes from the major fields. About half of the fields are subsea developments tied into other infrastructure.
The NPD projects that the overall production of oil and gas in 2024 will be close to the record year 2004 – partly due to the Johan Sverdrup field and because the Johan Castberg field in the Barents Sea is scheduled to come on stream in 2022. Gas will account for about half of 2024 production.
Overall production declined somewhat in 2019 compared with 2018. This was caused by lower gas production than expected – but the NPD expects this to turn around in 2020.
The Johan Sverdrup field, which came on stream in autumn 2019, is the third largest oilfield on the shelf and already accounts for around 20% of Norwegian oil production.
The Oda, Trestakk and Utgard fields also came on stream in 2019. All three are subsea developments tied into existing host fields.
In 2019, plans for development and operation (PDOs) were approved for seven fields. The largest was the second development stage of Johan Sverdrup.
In 2019, investments are estimated at around $16.9 billion, 17% higher than in 2018. The same level is expected in 2020.
The NPD estimates that 48% of resources have been produced. Of these, decisions have already been made to produce around 18%.
The NPD’s projection of undiscovered resources remains steady for the North Sea and Norwegian Sea, while expectations have been lowered in the southeast Barents Sea due to dry wells. However, expectations in central parts of the Barents Sea have been increased due to the mapping of several prospects and ‘much good work in the production licences’.
In the summer of 2019, the NPD collected 3D seismic data in the northeastern part of the Barents Sea, along the border with Russia. These data are currently being processed.
The Seabed Minerals Act entered into force in July 2019 to facilitate extraction of mineral deposits on the shelf. The NPD has been preparing an overview of existing data and assisting the ministry in a potential opening process.
The NPD collected samples and mapped the topography on the seabed in parts of the Norwegian Sea in both 2018 and 2019. Sulphide and manganese crust deposits were proven.
